Online Foreign Exchange Product Description and Disclosures

Description of Online Foreign Exchange Service. Access to the Service is provided to you by us through the CNB Internet web site, cnb.com. The Service comprises the following:

• Online Foreign Exchange Live Quotes - With this service you may obtain currency quotes and monitor rates in multiple currencies for which you have been authorized at any given time during the business operating hours established for the Service.
• Online Execution and Settlement - Once you have received an exchange rate quote, you can accept that transaction or allow the quote to expire without accepting. If you accept the transaction, you can then settle the transaction online using standard settlement instructions previously established by you, or new instructions you authorize on a one-time basis. The following types of contracts may be executed through the Online Foreign Exchange Service:

• Spot Currency Transactions - These are contracts to buy a fixed amount of one currency and sell another currency at an agreed upon and fixed exchange rate, usually for settlement in one or two days spot.
• Forward Outright Contracts - These are contracts with settlement beyond two business days (usually between 3 days and 1 year) at a fixed rate of exchange as derived from the spot rate adjusted for the relative time value of money between each country's respective currency.
• Forward Option Contracts - These contracts serve the same purpose as forward outright contracts, but have the added feature of a range of delivery or maturity dates instead of a fixed date, providing more flexibility in timing cash flow. The time between the two specified dates is called the option period, or "window," and is normally defaulted to 90 days.
• Swap Contracts - A forward swap is a simultaneous purchase and sale of one currency against another currency for two different settlement dates. It is usually a spot trade coupled with a forward outright contract. The currency swap allows the user to function in, or have use of, a foreign currency without being subject to spot rate fluctuations. The currency swap is used to hedge foreign investments and financing requirements, and also allows the user to "pull in" or extend the timing or maturity date of the delivery of currency.
• Extensions - An extension is a transaction in which the value date of an existing contract is extended to a new value date. It is only possible to extend a contract that has not yet reached its value date. It is not possible to alter the currencies from the original transaction. It is possible to do a partial extension. A new rate is applied to the original contract, and the instrument is calculated like a swap contract with two components.
• Take-ups - An early take-up is a transaction in which the value date of a previous contract is brought forward to a nearer date. It is possible to take-up an existing contract, i.e., a contract that has not reached its value date. It is not possible to alter the currencies from the original transaction. It is possible to do a partial take-up. A new rate is applied to the original contract, and the instrument is calculated like a swap deal with two components.

System Availability and Business Days. The Online Foreign Exchange Service is accessible during our regular foreign exchange trading business hours, except when the system is down for maintenance or other reasons. Our business days are Monday through Friday, except for holidays when we are closed. For information on customer service support and inquiries, refer to the back panel of this brochure.

Dealer Intervention. The Online Foreign Exchange Service produces automatic rates upon request when relevant limits are met by the customer. These limits are delineated in the Confirmation of Services Letter delivered to you upon implementation of the Service. When these limits are surpassed, a request by you for rate quotes may be sent to Dealer Intervention. Dealer Intervention is a manual intervention in which rates will not be quoted automatically, but will be quoted by our Foreign Exchange Department. The rates will then be forwarded to you via the Online Foreign Exchange Service. When Dealer Intervention is required, a message will appear in the system message line of the user's screen as follows: "Dealer Intervention Requested."

The most frequent reasons for Dealer Intervention are the following:

• Rates are not available for one or more currencies.
• Dealing is switched by CNB to Intervention only, for example during system maintenance.
• Dealing on one or both currencies is switched to Intervention only.
• Client contract or settlement limits have been exceeded.
• User transaction limit has been exceeded.
• User is set to Intervention only.
• Excessive market volatility.

Security. In order to maintain secure communications and reduce fraud, you agree to protect the security of your numbers, codes, marks, signs, public keys or other means of identification. We reserve the right to block access to the Service to maintain or restore security to our site and systems if we reasonably believe your password has been or may be obtained or is being used or may be used by an unauthorized person(s). You are responsible and liable for all electronic communications to the Bank made using security codes, digital certificates and/or passwords assigned to you, including any transaction entry errors, unauthorized use of the Service by persons having access to the Service from you, and fraudulent account transactions. You are responsible for any actions or omissions of your employees, agents, communication and ISP while preparing, transmitting, receiving, storing or handling communications between you and City National Bank. You will notify us at once if you discover or suspect unauthorized use of any means of identification or any unauthorized transaction in connection with the Service. You understand that neither the Electronic Fund Transfer Act (15 U.S.C. 1693 et seq.) nor Federal Reserve Board Regulation E (12 C.F.R. Part 205) applies to transactions originated using the Online Foreign Exchange Service.

User Name and Password. When you enroll for the Services, a unique user name and password will be issued to each individual authorized to access the service. After we process your enrollment in Online Foreign Exchange, we will provide you with an initial Log On name and password. The account owner who signs the Online Foreign Exchange Service Confirmation of Services letter is responsible for the security and use of the initial user name and password. When you receive your user name and password, you will need to log on to our Services. Once you begin the logon process, you will be prompted to change your password to something only you will know, using a minimum of 8 and a maximum of 16 characters that may be alphabetic and/or numeric. (Characters are NOT case sensitive - for example: if your password is "4Banking" and you type "4banking," it will work.) You should change your password often for security reasons, but you will be required to change your password every 30 days. It is important that you keep your password confidential to prevent unauthorized use of the Services. We recommend that you refrain from using such passwords as dates of birth or family names that may be easily recognizable. If you forget your password, contact our customer service representative.

Each individual authorized to access the Service will be issued a unique digital certificate in addition to his or her user name and password. Only recognized users of CNB's Online Foreign Exchange Service are allowed access to the Service. We are committed to providing you safe and secure Online Foreign Exchange Service. We are confident that our internal security infrastructure, requiring the 128-bit domestic grade encryption and a digital certificate issued to each individual authorized to access the Service in addition to a user name and password, will provide privacy and security to your account transactions and information.

Your role in security is as important, as is ours. Here are some recommendations on how you can increase the privacy and safety of the Online Foreign Exchange service:

• You are responsible for the security and use of your user name and password. Try not to select a password that is easily guessed (e.g., birthdate or spouse name). If you think your password has been compromised, change it immediately online. You should then verify that no unauthorized transactions occurred on your account. Notify us at once.
• Do not leave your computer unattended if you are still logged onto the Service.
• We recommend that you establish separate levels of security for executing dealing transactions versus settling those transactions.
• When you have completed your foreign exchange dealing online, always remember to click "EXIT" before visiting other Internet Web sites.
• If others use your computer, clear your cache or turn off and reinitiate your browser in order to eliminate copies of Web pages that have been stored in your hard drive. See your browser's HELP section for instructions on how to clear cache.
• We require that all browsers accessing the Service have 128-bit domestic grade encryption to conduct secure financial transactions over the Internet.

If you are currently using a browser with 40-bit encryption, you will be required to upgrade to 128-bit encryption to use our Service. Upgrading your browser is simple and instructions on how to do this are located in the browser's HELP menu.

You can check to see what level of security your browser has within the browser HELP menu. For Microsoft Internet Explorer go to "Help" and then "About Internet Explorer." The version with Cipher (security) strength should be listed. For Netscape users go to "Help" and then "About Communicator."

We review and approve the use of different browsers to ensure they meet our strict security standards.

Equipment and Software. To use the Online Foreign Exchange service, you must have your own ISP, the necessary computer equipment, and a compatible browser featuring 128-bit encryption. We support only those browsers specified in the e-Link Section of cnb.com, under the Frequently Asked Questions section. We do not endorse or provide an ISP. If you do not currently have an ISP, you are required to obtain one, and monthly charges from your ISP may apply. Software and ISP requirements may change from time to time and may affect your ability to access our Services. We are also not responsible for any errors, failures or malfunctions of your computer or software, or for any computer virus or related problems that may occur with your use of the Services. When downloading programs from the Internet, launching e-mails or sharing diskettes, your computer can be infected with a virus. We encourage you to utilize virus protection software to limit your risk. We are also not responsible for the actions or inactions of your ISP.

Transaction Confirmation. We shall confirm a contract with you by assigning a deal number to you online for the transaction. Only when you receive a confirmation number through the Online Foreign Exchange Service is it a binding deal. If you have not received a deal number as reference for the transaction, no deal has been executed for that transaction. We may also later confirm a contract by sending you a written confirmation by telefax or otherwise.

Offline Transactions. In the event that the Online Foreign Exchange Service is not available, you will be required to communicate to our International Department by telephone or fax in order to execute a contract. The fax shall contain the following information: 1) the foreign currency to be exchanged and whether it is to be bought or sold, 2) the amount of currency, 3) the duration of the contract, i.e., the delivery date, or for Forward Option Contracts, the window dates, and 4) the authorized person requesting the contract. We will then advise you of the purchase or sale price of the foreign currency, and you shall then tell us whether the price is accepted. When you accept the price, your acceptance shall constitute a contract. The contract is irrevocable and that date of acceptance is the contract date. A contract may only be agreed to during our normal foreign currency trading hours each business day. We shall confirm a contract with you by means of a callback procedure. We may also confirm a contract by sending you a written confirmation by fax. You shall send us written confirmation of a contract, other than a spot contract, by faxing the confirmation no later than one hour after accepting the offered price. You may use the written confirmation received from us, if any, to perform your obligation hereunder noting your agreement thereon together with any required information. The failure to timely receive the fax confirmation from you shall not be deemed, or in any way construed, as a cancellation of the contract, or evidence that no contract was executed; provided, however, in the event of such failure, we may, at our sole discretion, cancel the contract any time before the delivery date. We shall not be liable to you for cancellation hereunder and any cancellation by us shall not relieve you of your liability for any loss related to the contract.

No Signature Required. When the Online Foreign Exchange Service generates items to be charged to your account, you agree that we may debit your account at City National Bank, or any account of yours on which the item is drawn, without requiring your signature on the item, and without prior notice to you.

Changes in Information. You may request us to make changes to the Authorized User information set forth in the Confirmation of Services letter. You understand that it is your responsibility to notify the Bank immediately via phone or fax if any of the Authorized Persons named in the Confirmation of Services letter are no longer employed by the Corporation, or should no longer be authorized for access to the Service for any reason.

If you advise us via phone of any changes, this advice must be followed up by notification in writing and addressed to the following:

GLOSSARY OF TERMS

"Authorized Person(s)" means a person named in a "Resolution to Enter into Foreign Exchange Contracts, and Designation of Authorized Person(s)" executed by you and delivered to us from time to time, which designates who may enter into Contracts on your behalf. City National Bank is authorized and directed by the Customer to provide to the person(s) named and designated by the Customer in its completed Online Foreign Exchange Service Confirmation of Services letter any software and security devices, including security cards, codes, digital certificates and passwords related to the Service. The authorized person is responsible for providing and maintaining in writing the list of any additional authorized users for access to the Service. Any changes to the list of authorized users must be made in writing and are effective two (2) business days after Bank receipt thereof.

"Business Day" (whether or not capitalized) means any day, when our International Department is open and conducting its normal business, and the foreign currency being exchanged by you is available to us from the entity from whom we buy or sell the foreign currency.

"Contract" means the agreement by which you commit to purchase from us or to sell to us a certain amount of a specific foreign currency at a set price on or by a given date.

"Correspondent Bank" means the bank designated by us to receive customer's currency on our behalf if you are selling foreign currency to us.

"Customer's Currency" means the currency to be delivered by you to us.

"Delivery Date" means the business day on which we must either deliver foreign currency to you (or as you otherwise designate) if you are buying foreign currency, or deliver U.S. dollars to you if you are selling foreign currency to us.

"Dollar(s)" or the symbol "$" means the legal tender monetary unit of the United States of America.

"ISP" is the acronym for Internet Service Provider. City National Bank neither endorses nor provides for an ISP. You will be required to obtain an ISP prior to accessing the Online Foreign Exchange Service. Monthly charges from your ISP may apply.

"Option Period" (or "Window Dates") means the beginning and ending dates during which period you may select a day as the delivery date on a Forward Option Contract. The beginning window date shall be any business day after the contract date. The ending window date shall be the final maturity date of the Forward Option Contract and shall be a business day.

"Settlement Date" means the date on which customer's currency is due to us. If such due date falls on a day other than a business day, the settlement date is the next business day unless the next business day is in the following calendar month, in which case the settlement date is the last business day of the month in which the scheduled due date occurs.

"Value Date" means the maturity date of the contract, and is typically the same as the delivery date of the contract, which for forward option contracts would be the farther date of the window dates.

"We," "our," "us" refers to City National Bank.